Recurring billing is a billing transaction that is applied during a specific time interval. The recurring billing system collects from either checking or credit card account, manually or automatically sets up a billing schedule, deposits collection directly to your account, and electronically notify customers about the payment collection which will improve the audit of your billing and collection transactions.
Auditing your billing and collection transactions require a lot of accounting paper works. Most often human error could cause billing account discrepancies. This is more so when collections are from recurring billing transactions. To improve the management of your billing and collection transactions, an efficient recurring billing system could provide you with the following helpful facts:
Collects from either checking or credit card account
Recurring billing system collects billing payments from a checking account or a credit card account. This method of billing collection from checking account and credit card is given permission by the account holder to render recurring billing payments. A checking account protects the consumers from the risk and hassle of personally remitting recurring billing dues. Recurring billing taken from credit card accounts also entitles the account holders more gift incentives and freebies for frequent credit card use. All of the billing and collection process can be safely and easily manage since the transactions are done on a bank to bank basis.
Manually or automatically sets up a billing schedule
A billing schedule interval could be applied manually or automatically. You can set up a billing interval recurring plan by completing a specific billing date, amount of monthly billing, and a money charge entry. You can manually set up a billing interval in two methods. These methods are setting the state of a specific billing schedule or setting the state of all billing interval schedules. Billing intervals can also be completed before the billing due. In every completed billing interval, a money charge is created and included in the transaction invoice or receipt.
Deposits collection directly to your account
Most recurring billing system directly deposits the collection to your account. This will ensure an efficient billing collection remittance. It will also lessen collection discrepancies and errors. Your maximizing your time when billing collections are directly deposited to your bank account via bank to bank basis. The time consuming processes of manually accepting payments can be replaced by using automated recurring billing system to ensure accuracy in your auditing.
Electronically notify customers about the payment collection
Since the customers authorized the merchant to collect recurring billing payments from their personal credit and checking accounts, it is also a must for the merchants to notify the customers every billing transaction. Payment notifications would mean a lot of paper work load. It could be a hassle to both the merchant and the customer to receive regular notification papers. Since every billing transactions and payment have an immediate record, the transaction records could be sent electronically. This would provide customers and merchants a personal record of all billing transactions for easier audit reference.
With a recurring billing system, your auditing efficiency would surely improve without additional labor. Recurring billing would also ensure continuous cash flow and business transaction. It is a hassle free billing system that reduces cost and improves audit.